Conveyancing is when property is legally transferred from the current owner to a new owner. The process requires a licensed conveyancer or conveyancing solicitor acting on behalf of the purchaser to make certain the title deed to the land and property are received by their client. Conveyancing encompasses all of the administrative and legal work necessary to ensure the purchase of a home or land is legally valid. Anyone using a mortgage or conveyance lender to purchase a home will eventually hear the phrase exchange of contracts. This is when the seller and the buyer sign contracts. This occurs through the conveyancer for each party. This action is a legal commitment regarding the sale of the property for both parties. 

Until the seller and the buyer have exchanged signed contracts, the act of purchasing a home or land is not legally binding. This provides both parties with freedom before the contracts are signed. When the contracts are exchanged a deposit is required. The standard amount is approximately ten percent of the purchasing price. Prior to the contracts being signed, both the buyer and the seller have the right to cancel the transaction without any legal obligation regarding the other party. If the moving chain is lengthy, this can potentially increase the risks. Once the contract exchange has been completed, the seller and buyer are legally committed to the terms agreed on for the sale and the purchase of the property. If either party decides they want to cancel the agreement at this stage, the deposit paid for the exchange will be automatically lost. 

The Importance of the Conveyancer 

Conveyancing in Melbourne from Jims ensures the complicated legal process is understood and will be handled with both experience and knowledge. The duties of the conveyancer are important to ensure the contract exchange is successful. Their responsibilities include establishing a liaison with the solicitor hired by the seller for the receipt of a contract pack, obtaining a copy of the mortgage offer by request and ensuring all necessary searches through the local authority relating to the property are conducted. The correct procedure must be followed and include analyzing results obtained from local authority searches, arranging the date of completion with the seller and the buyer, exchanging contracts and transferring the deposit with the conveyancer and the preparation of the transfer deeds and completion statement. 

Once the transfer deeds have been signed, they must be transferred to the seller’s conveyancer so payment of the advance for the mortgage can be requested from the lender. The balance of the purchase price minus the deposit must then be transferred to the seller’s conveyancer. The ownership documentation is forwarded to the Land Registry and the title deeds to the mortgage lender. The conveyancer is responsible for most of legwork for the contract transfer and sale. Despite this, it is important to understand the seller and buyer also have responsibilities during the process.